Joshua's Antiques Has a Total Asset Turnover Rate of 1

Multiple Choice

Joshua's Antiques has a total asset turnover rate of 1.2,an equity multiplier of 1.4,a profit margin of 5 percent,a retention ratio of 0.8,and total assets of $120,000.What is the sustainable growth rate?

A) 6.98 percent
B) 7.20 percent
C) 7.33 percent
D) 7.54 percent
E) 7.91 percent